MOBILE, Ala.–(BUSINESS WIRE)–CPSI (NASDAQ: CPSI), a healthcare solutions company (the “Company”), today announced that its Board of Directors has extended the expiration date of its existing shares of $30 million through September 4, 2024. The buyback program was originally approved by the Company’s Board of Directors on September 4, 2020 and was scheduled to expire on September 4, 2022, prior to this extension. Under this program, the Company has repurchased 146,200 common shares as of August 2, 2022, with a total value of $4.4 million, and $25.6 million remains authorized for future repurchases.
The Company has funded and will continue to fund the share buyback program from a combination of cash on hand and cash from operating activities. Share repurchases may be effected through open market purchases, privately negotiated transactions or otherwise in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The program does not require the Company to acquire a specific number of common shares and the program may be modified or suspended at any time. The total number and value of shares to be redeemed will depend on the evolution of the Company’s share price and other market conditions.
CPSI is a leading provider of healthcare solutions and services. Founded in 1979, CPSI is the parent company of six companies – Evident, LLC, American HealthTech, Inc., TruBridge, LLC, iNetXperts, Corp. d/b/a Get Real Health, TruCode LLC and Healthcare Resource Group, Inc. Our combined companies are focused on improving the health of the communities we serve, connecting communities for a better patient care experience and improving our customers’ financial operations. Evident provides comprehensive EHR solutions to community hospitals and their affiliated clinics. American HealthTech is one of the nation’s largest providers of EHR solutions and services for post-acute care facilities. TruBridge is focused on providing commercial, consulting and managed IT services, as well as its complete RCM solution, for all care environments. Get Real Health focuses on solutions to improve patient engagement for individuals and healthcare providers. TruCode provides medical coding software that enables complete and accurate code assignment for optimal reimbursement. HRG provides specialized RCM solutions for installations of all sizes. For more information, visit www.cpsi.com.
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be generally identified by the use of forward-looking terminology and words such as that “expects”, “anticipates”, “estimates”, “believes”, “predicts”, “intends”, “projects”, “potential”, “may”, “continues”, “should », « will » and words of a comparable nature. meaning. Without limiting the generality of the foregoing statement, all statements in this press release regarding the future financial and operating results of the Company are forward-looking statements. We caution investors that these forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors could cause actual results to differ materially from those projected in the forward-looking statements. These factors may include: the impact of the ongoing COVID-19 pandemic and related economic disruptions which have materially impacted CPSI’s revenues and may materially impact CPSI’s gross margin and revenues CPSI, as well as the financial condition and/or liquidity of CPSI; federal, state and local government actions to address and contain the impact of COVID-19 and its impact on us and our hospital customers; operational disruptions and increased cybersecurity risks due to a significant percentage of our staff working remotely; saturation of our target market and hospital consolidations; adverse economic or market conditions that may lead to lower spending on information technology and services; significant legislative and regulatory uncertainty in the healthcare industry; exposure to liability for non-compliance with regulatory requirements; competition with companies that have greater financial, technical and marketing resources than we do; potential future acquisitions which may be costly, time consuming and subject to other inherent risks; our ability to attract and retain qualified customer service and support personnel; disruption due to periodic restructuring of our sales force; the potential inability to properly manage growth in new markets into which we may enter; exposure to many often conflicting laws, regulations, policies, standards or other requirements in the course of our international business activities; potential litigation against us; our dependence on an international workforce which exposes us to various business disruptions; the potential inability to develop new products or improve current products that keep pace with market demands; failure to develop new technologies and products in response to market demands; failure of our products resulting in claims for medical and other losses; security breaches and viruses in our systems resulting in customer claims against us and damage to our reputation; failure to maintain customer satisfaction through new product releases free of errors or undetected problems; failure to convince customers to migrate to current or future versions of our products; failure to maintain our margins and service levels; increase in the percentage of total revenues represented by service revenues, which have lower gross margins; exposure to liability in the event that we provide inaccurate claims data to payers; exposure to liability claims arising from the licensing of our software and the provision of services; dependence on licenses of rights, products and services of third parties; misappropriation of our intellectual property rights and potential intellectual property claims and litigation against us; interruptions to our power supply and/or telecommunications capabilities, including those caused by a natural disaster; general economic conditions, including changes in financial and credit markets which may affect the availability and cost of credit to us or our customers; the potential inability to obtain additional financing on favorable terms to meet our future capital requirements; our substantial indebtedness and ability to incur additional indebtedness in the future; cash flow pressures to service our outstanding debt; the restrictive terms of our credit agreement on our current and future operations; changes and interpretations of financial accounting issues that govern the measurement of our performance; significant charges to earnings if our goodwill or intangible assets become impaired; fluctuations in quarterly financial performance due to, among other factors, the timing of customer installations; the volatility of our stock price; failure to maintain effective internal control over financial reporting; lack of employment or non-compete agreement with most of our key personnel; the inherent limitations of our internal control over financial reporting; vulnerability to significant damage from natural disasters; market risks related to changes in interest rates; and other risk factors described from time to time in our public announcements and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K. With respect to our dividend policy, the payment of cash dividends is subject to the discretion of our Board of Directors and will be determined in light of then prevailing conditions, including our earnings, leverage, operations , our financial conditions, our capital requirements and other factors deemed relevant by our Board of Directors. Going forward, our Board of Directors may change our dividend policy, including the frequency or amount of any dividends, in light of then-existing conditions. We also caution investors that the forward-looking information described herein represents our outlook only as of that date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release.